Report Says DOJ to File Lawsuit This Week Against Google Over Dominance of Digital Ad Market

If filed, this would mark the second federal complaint against Google alleging antitrust law violations.
Image: Pawel Czerwinski

UPDATE: The U.S. Department of Justice and eight states indeed filed an antitrust lawsuit against Google on Tuesday.

According to the filed complaint: “Google’s anticompetitive behavior has raised barriers to entry to artificially high levels, forced key competitors to abandon the market for ad tech tools, dissuaded potential competitors from joining the market, and left Google’s few remaining competitors marginalized and unfairly disadvantaged.”


According to a report in Bloomberg News citing people familiar with the matter, the U.S. Justice Department is set to sue Alphabet Inc’s Google regarding the company’s dominance over the digital advertising market.


 

According to Bloomberg, the case is expected to be filed in federal court before the end of the week, which cited sources who asked not to be named.

This would mark the second federal complaint filed against Google alleging antitrust law violations surrounding how the tech giant maintains its dominance. The U.S. Justice Department already filed a lawsuit against Google in 2020 focusing on the company’s monopoly in search  – that case is scheduled to go to trial in September.

The reported lawsuit, if filed, will be the fifth case in the US challenging the company’s business practices, with state attorneys general having filed three separate suits against Google claiming it dominates the market for online search, and advertising technology, as well as apps on Android. The lawsuits say that this is in violation of antitrust laws.

However, as Bloomberg reports: “Google has argued that the market for online advertising is a crowded and competitive one. In court filings and congressional testimony, the company has noted its rivals include other major players in the ad tech market such as Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp.”


 

According to Reuters, both advertisers and website publishers have complained that Google is not transparent about where ad dollars go, specifically regarding how much goes to publishers and how much to Google.

The company made a series of purchases, including DoubleClick in 2008 and AdMob in 2009, to help make it a dominant player in online advertising.

The Staff

The Staff

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